Vinalines sets ambitious profit target for 2019

Corporate Vinalines sets ambitious profit target for 2019 By Lan Nhi Tuesday, Aug 21, 2018,17:55 (GMT+7) Vinalines sets ambitious profit target for 2019 By Lan Nhi Vinalines continues to sell its loss-making ships and focuses on developing a more effective fleet – PHOTO: TL HANOI – Despite incurring heavy losses, Vietnam National Shipping Lines (Vinalines) will launch its initial public offering (IPO) on September 5, targeting profits of VND700 billion (US$30 million) next year. At Vinalines’ roadshow on August 20 to introduce its IPO plan, a representative of the firm said the profit is expected to increase to VND950 billion by 2020. Explaining the ambitious target, Le Anh Son, chairman of Vinalines’ Members’ Council, said Vinalines will continue to sell its old ships that were purchased in the 2006-2010 period, thus helping restructure the firm and achieve the targeted profit. The firm will also dissolve loss-making subsidiaries. According to Son, the firm had suffered an accumulated loss of more than VND22 trillion four years ago, reducing the equity to VND5 trillion. Unlike other State-owned enterprises, Vinalines plans to launch its IPO when its accumulated loss is reduced by 90%. At present, the loss is estimated at some VND2 trillion as the firm has settled its debts and sold its assets, such as ships and ports. The firm’s equity also went up from VND10.4 trillion in 2015 to more than VND12.5 trillion last year. Due to challenges in the sea transport market and Vinalines’ difficulties, the company has had to change its IPO plan several… [Read full story]